“Soft”ware Acting Firm:

Frequently when writing a tech note I like to compare two of the more important spaces within, in software and the semiconductors. Both are acting well and deserve your capital. I give a slight nod to software at the moment even though the SMH is more than tripling its return this week so far up almost 3%. A reason for that is the tight nature in which the IGV is trading, a hallmark bullish trait, as opposed to wide, sloppy trade that the SMH is exhibiting. A bonus within the space is the elevated pace of M&A, as FIVN is being acquired by ZM. Other deals in recent months have been CLDR and NUAN, and of course, WORK being swallowed by CRM last December. LYFT is acting well after a nice push off the very round 50 number and 200 day SMA support. Surely there are laggards as names like YY off 60% from most recent 52 week highs, and what about the name no one could stop talking about earlier this year in FSLY now off 62% from its yearly peak. Action like that speaks volumes within a strong space. Make sure you are listening.

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